Capitalizing on the innovations of others

We live in a culture that places great value on innovation. A company that manages to commercialize a product or technology before its competitors is considered to have a significant advantage. Many organizations therefore deploy considerable energy to stimulate the creativity of their employees and stay on the leading edge of innovation.

Yet, deep analysis shows that the inventors of a product are not always those who end up dominating the market. For example, the inventors of the video cassette recorder and disposable diapers were not JVC and Procter & Gamble, but long-forgotten firms called Ampex and ChicopeeMills.

Starting from these observations, the publications we have selected attempt to understand how a company can tap the value of a radical innovation that was invented somewhere else. Three essential messages were drawn from this analysis:

– Don’t necessarily try to stay on the leading edge of innovation. It can be just as attractive to capitalize on the innovations of others.

– Carefully monitor emerging markets that you could target.

– Develop the know-how to move from a niche market to a mass market, so that you can effectively design a mass market offering, ensure wide distribution and impose a standard.